Regulators open case against FairPoint

(Host)
State regulators have stepped up the pressure on FairPoint Communications by
opening a formal investigation into its ongoing service quality problems.

The
case could lead the board to pull the company's license to operate in Vermont.

VPR's
John Dillon reports:

(Dillon)
Nina Mazuzan's experience with FairPoint is one reason the company is in
trouble with regulators.

The
Burlington resident switched her phone service from FairPoint to
Burlington Telecom. That was in mid-February. But just last week, FairPoint
sent her another bill - for service that she hasn't used in five months.

(Mazuzan) "We're done with service. I
just want this -- it's almost $200 worth
of unnecessary charges that I want off of our financial records."

(Dillon)
It's stories like this - multiplied hundreds of times - that have frustrated
customers, and stateconsumer affairs specialists. Billing errors - like
Mazuzan's - are a common problem at FairPoint. Other issues include difficulties
in activating service for new businesses or seasonal customers.

Earlier
this month, the Douglas administration asked the three-member Public Service
Board to force FairPoint to show why its license to operate in Vermont should not be revoked.

The
board has now decided to launch a formal investigation. But FairPoint
spokeswoman Beth Fastiggi said the company doesn't believe the investigation is
necessary. She said FairPoint continues to make headway in fixing the problems.

(Fastiggi) "And although we've improved,
we're still not delivering the exceptional customer experience today. And to
accomplish that, we need to improve our systems."

(Montefusco) "I personally, and the
union I work for, really has no satisfaction in being able to say, ‘We told you
so.'"

(Dillon)
Ralph Montefusco is an organizer with the Communications Workers of America,
one of two unions that represent FairPoint employees.

The
union repeatedly warned regulators that FairPoint was a risky bet to take over
Verizon's northern New England territory. The CWA said the North Carolina company lacked the financial capital and the technical
expertise to make a smooth transition.

But
Montefusco said that was then. Now, he said, the union wants FairPoint to
survive.

(Montefusco) "And so we've got no
interest in seeing the company crash and burn and go out of business. That
isn't good for our members and it isn't good for the communities they live in."

(Dillon)
But Montefusco says FairPoint may not be the only one to blame for the current
problems.

(Montefusco) "They have some systems,
some computer systems, that they paid a lot of money for, that are failing
them. So, there is a certain amount of culpability with the company that
provided these systems."

(Dillon)
In New Hampshire, the state advocate for ratepayers wants the
FairPoint investigation broadened to include this software company. The
advocate also wants the probe to include a consultant hired by the states who said
that FairPoint could handle the transition.

But
Vermont Public Service Commissioner David O'Brien wants the focus to stay on
FairPoint.

(OBrien) "They hold the license to
operate in Vermont. And I don't
want to spend time in the weeds trying to sort out where things went badly for
them, I just want them to fix it."

(Dillon)
O'Brien said the Vermont case will put FairPoint executives under oath and on
the witness stand. He said the legal proceeding should keep information
accurate -- and should result in improved performance.